What is the net receivable value after the write off

Info icon This preview shows pages 5–8. Sign up to view the full content.

View Full Document Right Arrow Icon
what is the net receivable value after the write-off? G Bir -W D) ^ S$;nr: ffi *"'ooo - r1'7r" i-- i" . ' FIFO LIFO FIFO LIFO bJ EV Generally, which inventory costing method approximates for each of the foliowing? Cost of Goods Sold Endine Inventory ,y'- most closel1(tg-gygglt "9* F*'- I4* .+. ,' ,,," t'-. f- !i {} q { * I rt r \'\;: \!\ 'rt"' t -d P'"' +. ll{rc] G-r ' yr*S, LIFO LIFO FIFO FIFO For external financial statement reporting purposes, loss of inventory value is typically combined with: LltrL +- 1 f. ia- T .6,*\S, *:"::"',# l\ .f{" \ y'O.} Which of the following statements is true? /H&-/ A) FIFO results in a lower net income than LIFO when costs are increasing. t' LIFO ,.r,rtr, in a higher net income than FIFO when costs are increasing. P LIFO results in a higher net income than FIFO wfren costs are dqcreasing. /Fry LIFO results in the same net income as FIFO when costs are rtffffii#[a --_.,. l-t1ut l.Jf q:"il iS - r tn{tcfioo'l d{{tot&*vr r *tr"tk **tx f, {il {l' rl{Ure r W fifo L'rfl'L}- ry \ ==_ : &qkt fr3..h LrFo !.'..",r' i *'i#. E't[:t] i ,_1. ti frEti "i "\ s*,e Ltr:il L Ir(] f !rr: L$ F u
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
company X uses LIFO while its main competitor, company Y, uses FIFO' Which of the followine statements is true? ffii;;eiff.;;" in inventory costing methods does not affect comparisons of the 4r ) il;il;;ut"*"nt, because the aJtoai business activities are not affected by which B) method is used' a;;p;y Y is required to report in the Notes to the Financial Statements what the inventory balance wouid have been under LIFO' It is impossible to make ameaningful comparison of the financial results of the two companies. Company X is required to report ln the Notes to the Financial Statements what the inventory balance would have been under FIFO' -) 1 )L. A $15,000 understatement of the 2011 ending i"'9*9ry,*-us discovered-1ry:* 2005 urrent assets were overstated and net income was understated' current assets were understated and net income was understated. Current assets were overstated and net income was overstated' Currentassetswereunderstatedandnetincomewasoverstated. USE DATA FOR THE NEXT THREE QUESTIONS: A company's inventory records contain the following information: Beginning Inventory: Purchased on June 10 PurchasedonJune 15 Purchased on June 28 Total available 300 units at $2-60 400 units at$2-925 500 units at$.2-52 300 units at $3-30 Ir?& r ?.L?() dl 40 $4200 1W 5# Enri tF1stII L4 td i' t4t*:'1'f bt(u\'b!* fu u, 1.500 Thecompany,ol*J#gunitsduringJurreand"500unitswereinitsendinginventoryonJune30. 33. If rhe company uses the FIFO periodic method, what is the co.-s] gf it?gFq:5ys[9ll? A) $1,650 Bou !d ?, 1o Eq {} u.l $i"1?! to" N ?,6? Eoq ffi $t,+o+ Y $t,+oo 34. If the Company uses the LIFO periodic method, what is the cost of its c9,*.91!€99:l:1911: f,Ail,uz.e:s -? S u: S$z,soo . -?,"& r.q c) $2,sso e 38fr# D) $2.eoo ffi* 6
Image of page 6
7 I 35. The difference in cash flows between the same company doing LIFO or FIFO would be due to: . ../$"sales of inventory of inventory \ *.Q)- operating expenses {t))Staxes paid ffuottrb&d your company has 500 units in inventory that had been purchased for $12 each and that would c-urrently cost $15 to replace. Your supplier has just announced the cost of these is rising to $16.50.
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern